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Last edited 13 Oct 2015
Public project: construction
The construction stage is the period during which the integrated supply team takes possession of the site to carry out the works. Once the works have been completed, the certificate of practical completion is issued and the site is handed back to the client.
Depending on how experienced the client is, they may appoint external consultants to assist them. This means that some of the tasks attributed to the client below might actually be carried out by independent client advisers, a project manager or a contract administrator (employer's agent on design and build projects) and vice versa.
 Starting the work stage.
The client may identify a requirement to appoint additional independent client advisers such as site inspectors or a contract administrator (employer's agent on design and build projects) if this has not already been done.
Before work on site proceeds, the client and integrated supply team confirm that suitable welfare facilities have been provided and the integrated supply team (in their role as principal contractor) confirms that a suitable construction phase plan has been prepared.
NB. We attribute contract administration tasks (such as making payments under the construction contract) to a contract administrator. Under some forms of procurement (such as design and build) the contract administrator (sometimes referred to as the employer's agent) will work for the client, however, on private finance initiative (PFI) projects, the client will not be a party to the construction contract and will not make payments for construction. Instead, the body funding the integrated supply team (perhaps a special purpose vehicle (SPV)) will take on the role of client for the construction contract and so they may appoint the contract administrator.
The integrated supply team prepares interim applications for payment. The contract administrator checks applications for payment and issues interim certificates (payment notices). The notices must be issued within five days of the dates for payment set out in the contract. If any amounts are to be withheld, a pay less notice must be issued giving notice of the amount that will be paid and the basis for its calculation. The client (or funder) makes interim payments by the final date for payment.
The contract administrator holds regular construction progress meetings attended by the integrated supply team. The integrated supply team submits progress reports to the contract administrator during these meetings, and then the contract administrator prepares construction progress reports for the client (or funder).
 Preparing for occupation.
If they have not already done so, the client begins preparations for occupation of the development, including the preparation of an operational policy and migration strategy setting out how they will manage the transition into and the operation of the new facility.
The client may have an 'occupation services contract' for delivering and installing equipment, fixtures and furniture (sometimes from other premises). This contract may also pick up small building changes that are considered too costly to be instructed under the main contract.
 Inspections, commissioning and testing.
NB If the integrated supply team is contracted to operate the development once completed, they may undertake some of the roles attributed below to the client (such as inspections, commissioning, testing and client training).
The client (generally representatives of the facilities management department) agrees procedures for inspections, commissioning, testing and client training with the integrated supply team. If it has not already been done, the client may appoint an in-house or outsourced engineering team to witness testing and commissioning and to takeover the running of the services as soon as practical completion is certified.
The integrated supply team co-ordinates procedures for inspections, commissioning, testing and client training in relation to building services and other aspects of the building. They then rectify any defects that become apparent during commissioning, testing and inspection procedures.
The integrated supply team arranges for final inspection of the works by the building control inspector and arranges for the issue of a completion certificate. NB Within 5 days of the completion of the building, the integrated supply team must notify the building control inspector that the works have been carried out in accordance with the specification submitted with the building emission rate (BER) calculations, or the changes that have been made (see emission rates for more information).
The senior responsible owner (SRO) commissions an independent peer review of the project: gateway review 4: readiness for service which '...focuses on the readiness of the organisation to go live with the necessary business changes, and the arrangements for management of the operational services' (ref OGC Introduction to procurement: gateway 4).
The review team issues a confidential review report to the senior responsible owner who implements any actions necessary.
The integrated supply team prepares an interim application for payment, including the release of 50% of any retention. The contract administrator checks the application for payment and issues the certificate of practical completion and interim certificate.The client (or funder) makes payment by the due date. This will include the release of 50% of any retention. If any amounts are withheld, a pay less notice must be issued giving notice of the amount that will be paid and the basis for its calculation.
The contract administrator prepares and submits a construction stage report for the client (or funder). The client (or funder) assesses the construction stage report, and gives instructions as necessary.
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